EDIBLE ARRANGEMENTS FRANCHISE OWNER PLEADS GUILTY TO BILKING CITY AND STATE OUT OF MORE THAN $185,000 IN TAXES Defendant To Make Full Restitution Including Penalties And Interest

Queens District Attorney Richard A. Brown, joined by New York State Department of Taxation and Finance Commissioner Thomas H. Mattox, announced that on THURSDAY, JANUARY 8, 2015 a Queens man who owns an Edible Arrangements franchise in Springfield Gardens, Queens, has pleaded guilty to violations of the New York State Tax Code for failing to pay more than $185,000 in taxes due to both New York City and New York State. 

District Attorney Brown said, “Sales taxes are meant for the public treasury - not to line the pockets of businessmen. The defendant showed a callous disregard for the tax laws. He stole from his customers as well as from the State of New York and the City by under reporting his business’ earnings. The defendant has now admitted his guilt and will be sentenced accordingly.” 

Commissioner Mattox said, “The defendant admitted to willfully stealing tax dollars paid by customers, a crime that can’t be tolerated. We will continue to work with District Attorney Brown and other law enforcement partners to prosecute those who attempt to evade paying their fair share of taxes.” 

District Attorney Brown identified the defendant as Maurice Letman, 42, of Springfield Gardens, Queens. The defendant is the owner of MSM Arrangements that operates as an Edible Arrangements franchise at 133-23 Springfield Boulevard in Queens. The business sells fruit baskets and fruit bouquets. Letman pleaded guilty to violations of sections 1804 and 1802 of the New York State Tax Code and corporate defendant MSM Arrangements pleaded guilty to a violation of section 1804 of the Tax Code and criminal tax fraud in the third degree before Acting Queens Supreme Court Justice Suzanne Melendez. The business will receive a conditional discharge. Defendant Letman will be sentenced on March 2, 2015. 

District Attorney Brown said that the defendant’s business collected in excess of $2 million between 2007 and 2011, but failed to pay more than $100,000 in taxes owed. Between 2011 and 2013, the defendant’s business collected just over $1.2 million yet the defendant claimed in required filings to have only taken in about $26,000 - cheating the city and state coffers of another $50,000. 

The District Attorney said that the defendant has repaid over $90,000 and must still pay another $97,537. The total restitution is $188,448. As a condition of the plea agreement, the defendant signed an agreement with the New York State Department of Taxation to pay penalties and interest in excess of $200,000. 

The investigation was conducted by Forensic Tax Auditor Harry Marc-Charles of the New York State Department of Taxation and Finance under the supervision of Chunyip Tsui, the section head of Criminal Investigations Division. 

Are You in Trouble with the IRS or State? To schedule a free, legally privileged consultation with a Federal Tax Practitioner and Attorney in our conveniently located New York City office call (212) 974-3435 or contact us online. *Same day and emergency appointments are available Monday through Friday. 

✔  Unpaid income, sales and payroll taxes. 

✔   We negotiate excellent re-payment plans with the IRS and State.

✔   Missing tax returns prepared and filed within 48 hours, guaranteed. 

✔  Suspended passport / suspended drivers’ license.

✔  Civil and criminal tax representation.

✔  Income and sales tax audit. 

✔  Department of Labor.

✔  Workers Compensation.

Does Your Business Need Money for Taxes and Expenses? We provide excellent debt settlement options, including business and insurance financing, merchant funding, lines of credit and factoring. For a free consultation call (212) 974-3435 or contact us online. *Same day and emergency appointments are available Monday through Friday. 

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Going to Prison for Tax Crimes! Business Owner Fails to Pay Employment Taxes “Pleads Guilty”

A Whopping $400,000 in Unpaid Employment Taxes! And it’s off to the Big House. 

Truly told, this unhappy Jailbird should have hired SELIG & Associates.

Torn from the Headlines: Business owner pleaded guilty today to failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carol Casto for the Southern District.  According to documents and information provided to the court, from 2008 through 2012, Steve Lopez, 68, owned and operated Ready Transport Services (RTS), a transportation business that mainly provided taxi services.  From 2009 through 2012 he also owned RTS Ice Cream, Coffee and Candy Shop.  Both businesses were located in Montgomery, West Virginia.  Lopez was responsible for collecting and paying over to the Internal Revenue Service (IRS) social security, Medicare, and income taxes withheld from his employees’ wages.  He also was responsible for paying the employer’s share of his employees’ social security and Medicare taxes.  Lopez admitted that he did not pay approximately $393,851 in employment taxes due to the IRS, including funds he withheld from his employees’ paychecks as well as money he owed as their employer.  

Chief U.S. District Court Judge Thomas E. Johnston scheduled sentencing for March 14, 2018.  Lopez faces a statutory maximum sentence of five years in prison as well as a period of supervised release, restitution, and monetary penalties.

Effective Tax Representation

SELIG & Associates

We Successfully Resolve all Civil and Criminal Tax Issues. We solve income, estate, sales and payroll tax problems. We can prepare and file your missing tax returns in as little as 24 hours. We provide tax and legal representation at IRS audits, criminal examinations and appeal hearings. Services also include: release of wage garnishment and bank levy, monthly payment plans, collection due process hearings and offers in compromise. Our tax practice is limited to representation before the Internal Revenue Service, the New York State Department of Taxation and Finance, the New Jersey Division of Taxation, and the Department of Justice Tax Division. *For a free legally privileged consultation call SELIG & Associates directly (212) 974-3435 

How to Protect Yourself & Your Company Against Sexual Harassment & Hostile Work Environment Claims

We provide legal, insurance and other asset protection strategies for business-owners and medical service providers. By implementing an effective sexual harassment strategy today, you can protect your reputation, your business, and your assets tomorrow. We solve problems before they happen. To schedule a consultation or a comprehensive evaluation of your existing plan call Selig & Associates directly (212) 974-3435 *_{Our fees are Tax Deductible (IRC §162)}

Laws Enforced by EEOC

Title VII of the Civil Rights Act of 1964 (Title VII)
This law makes it illegal to discriminate against someone on the basis of race, color, religion, national origin, or sex. The law also makes it illegal to retaliate against a person because the person complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit. The law also requires that employers reasonably accommodate applicants' and employees' sincerely held religious practices, unless doing so would impose an undue hardship on the operation of the employer's business.

·       The Pregnancy Discrimination Act
This law amended Title VII to make it illegal to discriminate against a woman because of pregnancy, childbirth, or a medical condition related to pregnancy or childbirth. The law also makes it illegal to retaliate against a person because the person complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit.

The Equal Pay Act of 1963 (EPA)
This law makes it illegal to pay different wages to men and women if they perform equal work in the same workplace. The law also makes it illegal to retaliate against a person because the person complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit.

The Age Discrimination in Employment Act of 1967 (ADEA)
This law protects people who are 40 or older from discrimination because of age. The law also makes it illegal to retaliate against a person because the person complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit.

Title I of the Americans with Disabilities Act of 1990 (ADA)
This law makes it illegal to discriminate against a qualified person with a disability in the private sector and in state and local governments. The law also makes it illegal to retaliate against a person because the person complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit. The law also requires that employers reasonably accommodate the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or employee, unless doing so would impose an undue hardship on the operation of the employer's business.

Sections 102 and 103 of the Civil Rights Act of 1991
Among other things, this law amends Title VII and the ADA to permit jury trials and compensatory and punitive damage awards in intentional discrimination cases.

Sections 501 and 505 of the Rehabilitation Act of 1973
This law makes it illegal to discriminate against a qualified person with a disability in the federal government. The law also makes it illegal to retaliate against a person because the person complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit. The law also requires that employers reasonably accommodate the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or employee, unless doing so would impose an undue hardship on the operation of the employer's business.

The Genetic Information Nondiscrimination Act of 2008 (GINA)

Chiropractor Sentenced For Tax Evasion (he should have hired SELIG & Associates)

On April 19, 2017, in Minneapolis, Minnesota, Donald Gibson was sentenced to 33 months in prison for tax evasion and for presenting a fake financial instrument to the U.S. Department of Treasury. Gibson failed to file his 2004 through 2014 individual income tax returns and attempted to evade his income tax liabilities for these years by diverting money to a warehouse bank called MYICIS, cashing over $800,000 in business checks at a check-cashing facility and submitting fake money orders and bogus financial instruments to the IRS. Gibson also formed Sovereign Christian Mission (SCM), a purported religious organization, as a way to further hide his chiropractic income and pay for his personal expenses. Gibson used SCM to pay for his groceries, entertainment, dinners, and car repairs. While the IRS was auditing his tax returns and later during the criminal investigation, Gibson presented a fake financial instrument purporting to be worth $300 million to the IRS and claimed that it paid off his income tax liabilities.

Emergency, Evening and Early Morning Appointments Available 

For a Personal and Legally Privileged Consultation in our New York City Offices call (212) 974-3435 Payroll Taxes, Trust Fund Recovery Cases, Income and Sales Tax Controversies. We negotiate Payment Plans, compromise Tax Debts, and resolve all Civil and Criminal tax issues, including Innocent Spouse Relief and Separation of Liability. Selig & Associates provides the most aggressive Tax Representation allowed by law. 

Tax Tips for Closing a Business

There are typical actions that are taken when closing a business. You must file an annual return for the year you go out of business. If you have employees, you must file the final employment tax returns, in addition to making final federal tax deposits of these taxes. Also attach a statement to your return showing the name of the person keeping the payroll records and the address where those records will be kept.

The annual tax return for a partnership, corporation, S corporation, limited liability company or trust includes check boxes near the top front page just below the entity information. For the tax year in which your business ceases to exist, check the box that indicates this tax return is a final return. If there are Schedule K-1s, repeat the same procedure on the Schedule K-1.

You will also need to file returns to report disposing of business property, reporting the exchange of like-kind property, and/or changing the form of your business. If you do not have a pre-printed envelope in which to send your taxes, refer to the Where To File page for a list of addresses. Below is a list of typical actions to take when closing a business, depending on your type of business structure:

Checklist

• Make final federal tax deposits
• Electronic Federal Tax Paying System (EFTPS)
• File final quarterly or annual employment tax form.
• Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return(PDF)
• Form 941, Employer's Quarterly Federal Tax Return (PDF)
• Form 943, Employer's Annual Tax Return for Agricultural Employees (PDF)
• Form 943-A, Agricultural Employer's Record of Federal Tax Liability (PDF)
• Issue final wage and withholding information to employees
• Form W-2, Wage and Tax Statement (PDF)
• Report information from W-2s issued.
• Form W-3, Transmittal of Income and Tax Statements (PDF)
• File final tip income and allocated tips information return.
• Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips (PDF)
• Report capital gains or losses.
• Form 1040, U.S. Individual Income Tax Return (PDF)
• Form 1065, U.S. Partnership Return of Income (PDF)
• Form 1120 (Schedule D), Capital Gains and Losses (PDF)
• Report partner's/shareholder's shares.
• Form 1065 (Schedule K-1), Partner's Share of Income, Credits, Deductions, etc. (PDF)
• Form 1120S (Schedule K-1), Shareholder's Share of Income, Credits, Deductions, etc. (PDF)
• File final employee pension/benefit plan.
• Form 5500, Annual Return/Report of Employee Benefit Plan
• Issue payment information to sub-contractors.
• Form 1099-MISC, Miscellaneous Income (PDF)
• Report information from 1099s issued.
• Form 1096, Annual Summary and Transmittal of U.S. Information Returns(PDF)
• Report corporate dissolution or liquidation.
• Form 966, Corporate Dissolution or Liquidation (PDF)
• Consider allowing S corporation election to terminate.
• Form 1120S, Instructions (PDF)
• Report business asset sales.
• Form 8594, Asset Acquisition Statement (PDF)
• Report the sale or exchange of property used in your trade or business.
• Form 4797, Sales of Business Property (PDF)

Emergency, Evening and Early Morning Appointments Available

·        

For a Personal and Legally Privileged Consultation in our New York City Offices call (212) 974-3435 Payroll Taxes, Trust Fund Recovery Cases, Income and Sales Tax Controversies. We negotiate Payment Plans, compromise Tax Debts, and resolve all Civil and Criminal tax issues, including Innocent Spouse Relief and Separation of Liability. Selig & Associates provides the most aggressive Tax Representation allowed by law.